The government will create an equity fund for start-ups with a 20% limited partnership: MoS IT

The government will set up a new investment fund for start-ups with a limited 20% stake to provide additional capital support to entrepreneurs, and the corpus will be managed by private fund managers, the minister said. State at Electronics and Computing Rajeev Chandrasekhar. Saturday.

The announcement in this regard has already been made by Finance Minister Nirmala Sitharaman, he said.

“The Minister of Finance has announced that there will be such a fund where the government will be a 20% sponsor and which will be managed by private fund managers.

“There will be a fund which will be created and sponsored by the government of course but it will be managed like any other private fund. This will create the required investment capital to complement what exists today,” Chandrasekhar said at an event organized by the Confederation of Indian Industry (CII).

Sitharaman had announced the creation of government-backed funds to encourage important emerging sectors, such as climate action, deep tech, digital economy, pharmaceuticals and agri-tech.

The government has already set up some of the funds like the Startup India Seed Fund Scheme (SISFS) with an outlay of Rs 945 crore to help start-ups meet their capital requirements.

Some states, including Karnataka, Uttar Pradesh, Bihar, Gujarat and Rajasthan, have set up funds to support start-ups.
“Now is the perfect time to be an entrepreneur. It’s a good time to be a start-up.

“It is an absolute mission and an article of faith for our Prime Minister (Narendra Modi) and our government that the expansion of the start-up ecosystem, its funding, its nurturing and the creation of innovations in the ecosystem of start-ups…are there in a post-COVID-19 world in a way where intellectual properties are created,” Chandrasekhar said.